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Stocks B / Berkshire Hathaway


Subject:  Re: Rethinking Heinz addition Date:  2/23/2013  1:39 PM
Author:  rationalwalk Number:  199025 of 236845

Phrased another way, one might view it as a deal that only made sense
if some changes were made at Heinz. Berkshire doesn't have a management
team to do so, they don't do deals that require supplying management.

From what I have read about 3G, these aren't people who are content to passively earn mid to high single digit returns on their investment. They go into companies and "optimize" the operations and then they eventually exit. What is strange about this deal is not only the fact that Berkshire is involved in a "turnaround" story (at least from the perspective of 3G) but that Buffett has said that 3G is be a partner "forever".

I'm sure this will be the subject of some discussion in the annual letter as well as at the shareholder meeting so we will probably have more answers relatively soon.
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